Smaller employers are now starting to be affected. Each employer has what is known as a “staging date”. This is the start date by which the employer must have their scheme set up and operating from.
Do you know when your staging date is?
For the vast majority of our clients the staging date is going fall in the 2017/18 tax year, but for some, it’s happening in 2016/2017.
Before your staging date you will have to:
- Set up a workplace pension scheme
- Automatically enrol workers who meet the age and earnings criteria
- Enrol other workers who may ask to join the scheme
It can take six to twelve months to get the setup process completed. If you are not ready in time you may be fined.
What will it cost?
An employer must contribute to its employees’ pensions, but other aspects also need to be considered, such as:
- Supplier cost increases (as their staff are affected)
- Dealing with extra administration
- Knowing what to do and when
- The new National Living Wage
It all needs to be thought about and planned for.
TALK TO US sooner rather than later. No-one wants to be faced with the extra costs, but it’s going to happen, we can’t change that, what we can change is how we deal with it. If you wish to discuss this or need any advice, please feel free to contact the office.